Didi, the dominant ride-hailing company in China, launched its car-sharing platform Wednesday, the Chinese startup said in a statement.

China surpassed the U.S. as the top market for electric vehicles in 2015 thanks to government subsidies and stringent emission regulations. The government has set a goal to sell 7 million zero- and low-emission vehicles annually by 2025. As the auto industry transforms rapidly toward battery-powered vehicles and autonomous cars, major manufacturers are bracing for challenges including billions of dollars in investment with uncertain payoffs.